Tax & Accounting Blog

South Carolina Bill Would Provide Big Tax Break for Amazon

Indirect Tax, Sales and Use Tax, Sales Tax Nexus April 15, 2011

H4091/s0808 were introduced in the South Carolina Legislature on Wednesday. The companion bills, if passed, would settle the dispute in the state over whether or not Amazon will be required to collect retail sales taxes on goods handled at a distribution facility currently under construction in Lexington County.

At the time state economic development leaders negotiated with Amazon to build the center in South Carolina a sales tax break was on the books but was about to expire. The $100 million dollar center is expected to create 1,249 permanent jobs if completed. Economic development leaders agreed to revive the sales tax exemption to lure Amazon to their state. Gov. Nikki Haley, however has balked at the plan to extend the tax break to Amazon. Amazon has publicly stated that without the break they will not complete the facility.